Hi Frank,
If you were in Austin Texas, I would tell you to give me a call!
CMA stands for Comparative
Market Analysis. There are a couple of avenues you can go to obtain a CMA
based on available data in your area.
The most obvious is your trusted Realtor. Realtors as
professionals belong to locale organizations that compile market data in your
area. From this data a Realtor can pull together a comparative analysis of
current properties on the market, Number of days on the market, number of homes
pending waiting to be closed and number of home closed or sold.
Some people are surprised when they receive their CMA and a
home 5 door’s away is not on the analysis’. I try to include close proximity
homes in the comments section of the report but do not always use them for comparison.
Why? When doing these analysis it is important to have as many features between
your home (target home) and the comps (comparative) homes.
The CMA helps give the consumer a clear picture of what the
value of his/her home is at a given time in the market. I try to stay as close
to what an appraiser is going to be looking at the time the home is sold so
there are not any surprises when the finale appraisal comes in for the new
buyer. Appraisers try to keep sold comps to w/in 90 days of the appraisal but sometimes
may have to go back further depending on activity in your area. It is not un-common
to have some areas that do not have close by comps.
So SQFT, Location, age of home, construction, lot size and
schools are the main things to begin an analysis’. From there you want to try
to keep sold comps to w/in 3 months or 90 days. So I usually start with a SQFT
range of 200 SQFT on either side of target property, Range in home age and I
plug in elementary, middle and high school campuses and see what activity there
is. I might add 30-60 days onto the sold’s if there are not enough comps. Once I get a selection of listings I then
start to analyze each listing and see how they compare to target. # of stories
will have an effect, lot size, amenities etc.
Once the listings are narrowed down for active I repeat same
for any Pending listings and sold listings. Most Realtors have a presentation
method that is unique to them. I like to show the client the average, minimum
and max values for the final selection. This will help guide the client as to
how to price their home and help manage expectations on expected final sale price
range.
If an area does not have a lot of comparables then the
Realtor must expand the search area until they are able to come up with more
listings to use in the analysis. This becomes a little more complicated because
you then take into consideration what another community might have to offer
then start making adjustments in comparison to the target property criteria
(either up or down).
A second alternative to the Realtor is to hire a locale
licensed appraiser to come in and do an appraisal in their format using their
set criteria. Their analysis is sometime more subjective depending on the
market data they have access to. In a lot of cases it may be the same source as
the Realtor but they may also use other resources outside the locale real estate
data base.
Whatever route you go you can see that this report entails
quite a bit of work to make sure you get an accurate picture. Once you receive
the CMA and go over it with your Realtor it is perfectly acceptable to ask questions,
point out areas where you think the Realtor may have missed a property ( It is
not uncommon for a client to have more direct knowledge about a neighbors
recent sale) and let the realtor make adjustments accordingly. The whole
purpose of the CMA is to assist you the client in determining the best list
price and help determine expectations of selling price.
I would be privileged to help refer you to an experienced
Realtor/Broker in your area. Please feel free to contact me by Text/Phone @
512-922-4922 or Email rkenney@gmail.com
A happy safe and healthy new year to you all!
Regards
Bob Kenney, Realtor
Vice President, Turnquist Partners Realtors
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